Tracking the Value of Oak Along the Supply Chain

Tracking the Value of Oak Along the Supply Chain eia The Russian Far East contains the world's last old-growth temperate hardwood forests, a unique biodiversity-rich ecosystem home to the last 450 Siberian tigers remaining in the wild environmental investigation agency and depended upon by local communities for food and livelihoods . A three-year investigation by EIA revealed how demand for hardwood furniture and flooring in the US, EU, Japan, and China is fueling a crisis of illegality and corruption in the forest sector in the Russian Far East. The Russian Far East (RFE) Mongolian Oak Russian Far East Mongolian Oak Harvesting Area A small but valuable and ecologically significant proportion of exports consisted 80% 96% of "precious hardwoods", namely Mongolian oak, Manchurian ash, Japanese elm, Amur linden, and Manchurian linden. These species are notable for providing food and habitat for deer and wild boar, which in turn are the primary prey species for Siberian tigers and the critically endangered Amur leopard. 50-80% of precious 96% of hardwood hardwoods harvested in exports flow directly over RFE are done so illegally. the border to China. Black Market Actors at Every Level Profit From the Illegal Timber Trade From 2011-2013, EIA conducted an investigation into the illegally harvested timber from Russia through China, and onwards to the US, EU, and Japan. Undercover investigators met with Chinese and Russian individuals active across Eastern Russia, and spoke with more than 20 different sawmills throughout China. At all levels of the supply chain, EIA investigators encountered both a keen awareness of the great extent of illegal logging practiced in Eastern Russia, as well as a "no questions asked" attitude towards the legality of these companies' own timber imports. $2994/m³ 30 In U.S. Showrooms $1031/m³ Customers in the United States pay $2,994 per cubic meter, triple the price at export of finished oak flooring from China. Black market actors reap the lion's share of the profit. At Chinese Export Chinese processors of illegal old-growth oak sell finished products for $1031 per cubic meter, still only about one third (1/3) of the final retail price. $640/m³ On Border Markets in China Valuable oak logs go for $640 per cubic meter on Chinese border markets, with revenues often $211/m3 captured by Chinese companies involved in illicit trade, or willing to look the other way to profit from the cheaply-priced black market timber. At Russian Export Official price at point of export in Russia. Illegally cut oak lowers profit for the whole Russian forest industry. This deprives the Russian government of badly-needed profit though customs dutie $15/m³ Paid to Loggers $15.00 per cubic meter is paid to loggers who harvest the illegal lumber. They receive less than 1% of the final sale price. $0 Reinvested in Forests and Communities Local forest communities see none of the proceeds from the illegal timber trade. None of the profits are reinvested in proper management of Russia's old-growth forest ecosystem, as illegal harvesting cheats on taxes and dodges licensing fees. How You Can Help Be on the lookout for precious hardwoods It is imperative that the US strengthen Chinese authorities must pass legislation European Union member states must enact Japan must bring its national laws up to sourced from Russia and China (oak, ash, implementation and enforcement of the to prohibit imports of illegal timber from and implement national legislation to come speed with other major timber-consuming elm, and linden). These should be considered Lacey Act, and continue to lead in the around the world and act to acknowledge into compliance with the EU Timber countries, with an enforceable ban on high risk for buyers concerned about the fight to shut down end markets for and comply with the laws of source Regulation, Europe's ban on imports of illegal timber imports and strict penalties sustainability of their purchases. illegal timber and wood products. countries, like Russia, which fuel its illegal timber, to ensure their markets do for illegal timber traders. current manufacturing boom. not support the illegal timber trade. twitter @EIAenvironment era facebook /environmentalinvestigationagencyDC environmental investigation agency Source: Environmental Investigation Agency. Liquidating the Forests: Hardwood Flooring, Organized Crime, and the World's Last Siberian Tigers. Washington, DC. Oct. 2013.